For airlines, an ensuing recession will actually be revealing

Southwest Airlines Co. had more than $16 billion of cash on hand as of the second quarter, a profitable one in which it hauled record revenue.

In all likelihood, Southwest (NYSE: LUV), the second-busiest airline in Houston, will probably report a profitable third quarter later this month. Yet, the Dallas-based carrier finds its stock at its lowest level since 2020 in the weeks after the pandemic first began.

Savanthi Syth, an analyst at Raymond James, said she thinks “it’s crazy” that Southwest…